A broad US dollar rally is pressuring the euro as it carves out a fresh low since November.
Rising tensions in the Ukraine are one of the catalysts as it stokes fear that sanctions will be strong enough to weigh on European growth. Fear that the Fed could take a more hawkish tone and German 10-year yields falling to a record low of 1.111% also weigh.
Technically, the euro doesn’t have much going for it with only minor support at 1.3400 and a bearish crossover of the 100-dma and 200-dma likely in the next week or so. The real sell signal in the pair came when the 55-dma fell below the 200-dma. It’s something we highlighted at the time and the pair is down more than 250 pips since.
EURUSD daily with death cross highlighted
